JF Tech proposes up to 388.01 million bonus warrants
The warrants would have a five-year tenure, with the exercise price to be set after the relevant approvals are obtained.
JF Technology Bhd (JF Tech) has proposed distributing as many as 388.01 million warrants free to eligible shareholders. Under the proposal, shareholders would receive two warrants for each five existing shares, the company said in a statement.
The Main Market-listed manufacturer of test contacting and interface solutions for integrated circuit (IC) makers said the warrants would have a five-year tenure. Its board will set the exercise price after obtaining the relevant approvals.
The price may be set at a discount or premium capped at 20 per cent against the company’s five-day volume-weighted average market price (5D-VWAMP) before price fixing. Directors will consider past share-price movements and market conditions.
For illustration, JF Tech assumed an exercise price of RM0.80 per warrant. That represents a premium of approximately 3.5 per cent against its 5D-VWAMP of RM0.7728 through the latest practicable date.
Using that assumption, the company said full exercise of the warrants could generate gross proceeds ranging from approximately RM308.4 million to RM310.4 million. The funds would meet working capital needs and capital expenditure requirements as holders exercise their warrants.
JF Tech expects completion in the first half of 2027, provided there are no unforeseen circumstances. The proposal requires approval from Bursa Malaysia Securities Bhd and shareholders at an extraordinary general meeting that will be convened.
